In collaboration with China University of Petroleum in Beijing (CUPB), we (Uppsala Global Energy System Group) have studied China’s giant oilfields and calculated what their production will be in the future. When that scientific study is accepted for publication I will return to its conclusions. Professor Pang from CUPB spoke at the ASPO conference in Cork, Ireland, 2007, and mentioned that China’s new oil policy was to have production control over 50% of the nation’s needs and to buy 50% on the open market. Previously they had 50% control through control of production in China. However, the fact that production in China’s giant fields is now declining means that they must have control over some production outside of China to attain the 50% level.

The Financial Times has discovered a letter from Nigeria’s president to the Chinese oil company CNOOC. In Nigeria, ExxonMobil, Shell and Chevron have particular production rights that are time-limited and soon they will negotiate on their extension. Now CNOOC wants to participate in the negotiations and a price of 30 billion dollars is being discussed. Recently, another Chinese company paid 7 billion dollars for a Swiss oil company and we know also that they purchased rights from Tanganyika Oil to extract oil in Syria.

The policy goal of 50-50 that Professor Pang discussed two years ago is now being implemented. When one considers China’s gigantic need for oil in the future, we will most likely see more deals where production rights change flag. China is now vacuuming the international oil market and the question is whether any upper price limit exists.

Heating (Mainly district heating in cities with energy from bio,from waste burning and waste heat from the industry. One family houses outside cities are mainly heated by electricity more and more using heat pumps.)The bio portion is 55 TWh. Very little oil is used.

Transportation uses 93 TWh, mainly oil but 6 TWh ethanol, Fame and biogas. We have an ethanol production of 200 000 m3 (1,5TWh))per year and will next year produce 140 000 m3 (1.4 TWh)biodiesel from wood. All petrol has a 5 % ethanol additive.